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The Union Cabinet has said that deviant pay scales of below board level executives in five Central power cwill not be regularised.

“The Union Cabinet has approved the proposal of the ministry of power that the deviant pay scales adopted for below Board level executives from January 1997 shall not be regularised,” said an official release, adding that no recovery shall be made for the excess pay drawn for the last 16 years.

The decision, which will impact below board level officials of five Central public sector units of the power ministry — Rural Electrification Corporation Ltd, NHPC Ltd, North East Electric Power Corporation, THDC India Ltd. and SJVN Ltd, was taken at a meeting of the Cabinet on Thursday.

The five PSUs had adopted deviant pay scales from January 1, 1997 that did not meet the norms of the department of public enterprises – the nodal agency for all state owned firms.

As a result, they could not adopt the new pay scales on regular basis that were brought into effect from January 1, 2007.

The Cabinet’s decision follows a recommendation by a group of ministers led by finance minister P Chidambaram that the pay scales may be fitted from January 2007 after correcting the deviations.